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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 689.230.0%Jan 23 4:00 PM EST

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To: Fun-da-Mental#1 who wrote (35118)12/13/1999 6:15:00 PM
From: pater tenebrarum  Read Replies (1) of 99985
 
Fun, not to forget that the stock buy backs are done to the detriment of balance sheets. in '98 corporate America used 125% of reported earnings to buy back stock. it is highly questionable if buying back extremely inflated stocks on credit is actually to the long term benefit of shareholders. simply put, it's fine as long as the bubble inflates further, but will be viewed as detrimental once it pops. at current prices companies should issue shares, not redeem them. clearly, equity capital is a lot cheaper than debt at this point in time.

regards,

hb
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